Many deserving firms had indeed been deprived of working capital, say, or trade finance.
But it would also facilitate growth of a market for yuan trade finance, Mr. Chan said.
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Since trade finance tends to follow trade itself, this is a scary prospect for bankers too.
Chiew views the sell-off as an opportunity to accumulate shares in banks specializing in manufacturing and trade finance.
According to a recent World Bank study, large euro-area banks accounted for 36% of global trade finance in 2011.
It even leases the trucks that deliver the goods and extends trade finance.
In emerging Asia, the unfreezing of trade finance, a turnaround in stocks and hefty fiscal stimulus are powering a rebound.
First, existing models of short-term trade finance for producer groups can be replicated and scaled, while encouraging commercial banks to follow.
For the trade finance message it had to build up its infrastructure.
Another is the need for European banks to slim their balance-sheets: trade finance, because of its short-term nature, is easy to prune.
But trade finance is likely to be less abundant than it was.
The firm overall is keen to sell more services to its big base of corporate customers, for example in cash management and trade finance.
Martell said corporates usually work with several banks for trade finance, often dividing their trade finance among several where they have lines of credit available.
So during the financial crisis, as trade finance dried up, the Export-Import Bank lived up to its mission and stepped up to fill the void.
Argentina has no access to outside financing (not even trade finance).
Amid the cash-flow problems, DCM's main lender, Canada-based Maple Trade Finance, has taken control of some of the company's assets, said Carole-Ann Miller, Maple Trade's president.
JPMorgan Chase (JPM) CEO Jamie Dimon also said that they are seeing a large amount of trade finance revolvers and asset sales in mortgage-backed securities in Europe.
Delezenski, the senior vice president in charge of trade finance and commodities and Wall Street lending at Banque Nationale de Paris, which is owned by the French Government.
This covers a host of businesses that provide steady income and are not too capital-intensive, such as corporate cash management, foreign exchange, trade finance, global custody and hedge-fund administration.
Currently, PT Bank Negara Indonesia is the only Indonesian bank that has a full banking license in Singapore, which allows it to provide personal banking, trade finance and business loans.
Peter Sands, the boss of Standard Chartered, an emerging-market leader, argues that there are swathes of the industry doing blameless but critical things like cash management and trade finance for companies that fall outside the definition of narrow banking.
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Citigroup (C) CEO Vikram Pandit said at a recent Goldman Sachs Financial Services conference that there were opportunities for the bank to pick up share in trade finance, where French banks have traditionally been active and are now pulling out.
Trade finance is beginning to flow.
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With that promise in hand, the bank would make the purchase and immediately sell it onto the buyer at a mark-up, agreeing the buyer could pay, say, three months after goods are delivered--in effect, trade finance at a fixed rate with legal protection against default on the one side and loan sharking on the other.
This creates a lag between incurring costs and receiving revenues, a gap bridged by short-term trade-finance loans.
In an economy closed to flows of trade and finance, the cost will take the form of lower incomes.
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